Table of Contents
Introduction
Global Preclinical CRO Market size is expected to be worth around US$ 10.5 Billion by 2032 from US$ 5.2 Billion in 2023, growing at a CAGR of 7.5% during the forecast period from 2023 to 2032. In 2022, North America led the market, achieving over 47.50% share with a revenue of US$ 2.47 Billion.
This market’s expansion is largely fueled by heightened investments in drug discovery and the increased inclination towards outsourcing preclinical studies to CROs that provide specialized services such as bioanalysis, toxicology testing, and drug metabolism and pharmacokinetic (DMPK) studies.
Driving factors for the preclinical CRO market include the rising prevalence of chronic diseases, which necessitates new pharmaceuticals, thus enhancing the demand for preclinical research. North America leads in market share due to its advanced healthcare infrastructure and the presence of major pharmaceutical firms investing in R&D. Conversely, the Asia Pacific is poised for rapid growth, driven by cost efficiencies and a regulatory environment conducive to outsourcing preclinical studies.
Challenges such as stringent regulatory standards imposed by bodies like the U.S. FDA and the European Medicines Agency (EMA) could impede market growth by complicating the drug approval processes.
Parexel International Corporation, a prominent clinical research organization, has significantly bolstered its market position through acquisitions, strategic alliances, and technology advancements. In July 2021, EQT Private Equity and Goldman Sachs Asset Management acquired Parexel for $8.5 billion, aiming to expand its global footprint and enhance services like decentralized clinical trials and data management.
In August 2023, Parexel entered a strategic alliance with Partex, leveraging artificial intelligence (AI) and big data to improve biopharmaceutical clients’ project success rates by discovering new potential disease applications for their assets.
Additionally, in January 2024, Parexel partnered with the Japanese Foundation for Cancer Research to enhance access to oncology clinical trials in Japan, increasing the efficiency of clinical research and expanding patient treatment options.
The sector continues to experience significant global consolidation, as evidenced by FHI Clinical’s acquisition of Triclinium Clinical Development’s operations in South Africa and the purchase of Syneos Health by a consortium including Elliott Investment Management, Patient Square Capital, and Veritas Capital for around $7.1 billion. These mergers and acquisitions aim to enhance service capabilities and broaden geographic coverage.
Preclinical CRO Statistics
- The Preclinical CRO Market is projected to grow from USD 5.2 billion in 2022 to approximately USD 10.5 billion by 2032, reflecting a CAGR of 7.5%.
- In 2022, toxicology testing was the largest revenue contributor among the service segments in the market.
- The Patient-Determined Organoid (PDO) Model segment led by model type, accounting for 80% of the total market share.
- Pharmaceutical and Biopharmaceutical Organizations were the dominant end-users, capturing a significant share of the market in 2022.
- North America contributed 47.50% to the market share in 2022, establishing its leadership position.
- The Asia Pacific region is poised for rapid growth, driven by a high CAGR during the forecast period.
Emerging Trends in the Preclinical CRO Market
- Global Expansion and Outsourcing: The preclinical CRO sector is increasingly globalized, with companies expanding operations to diverse markets for cost-effective solutions and specialized expertise. Emerging regions like Asia-Pacific, particularly India and China, are expected to see rapid growth due to cost advantages.
- Technological Advancements: The adoption of advanced technologies, including artificial intelligence, high-throughput screening, and advanced analytics, is transforming the preclinical CRO market. These innovations enhance research efficiency and effectiveness, providing a competitive edge to early adopters.
- Focus on Specialized Therapeutic Areas: There is rising demand for expertise in specialized therapeutic areas such as immuno-oncology, gene therapy, and precision medicine. CROs offering services in these areas are witnessing increased market demand.
- Strategic Alliances and Mergers: The sector is experiencing notable mergers and acquisitions as companies aim to enhance service offerings and expand geographic presence. This consolidation enables CROs to offer end-to-end solutions across preclinical and clinical phases.
- Regulatory Support and Challenges: Regulatory environments are shaping the market, with changes in approval processes and safety standards impacting market dynamics. CROs adept at navigating these regulatory landscapes gain a strategic advantage.
Key Use Cases for Preclinical CROs
- Drug Safety and Efficacy Testing: Preclinical CROs conduct extensive testing, including toxicology, safety pharmacology, and DMPK studies, to evaluate pharmaceutical compounds before clinical trials.
- Support for Therapeutic Areas: Services across oncology, neurology, cardiology, and other therapeutic areas address the growing demand for specialized treatments, particularly in cancer therapeutics.
- Early Research and Proof-of-Concept Studies: Early-stage research, such as proof-of-concept and first-in-human studies, helps determine potential efficacy and target populations for new therapies.
- Regulatory Compliance and Submission: CROs ensure compliance with global standards like Good Laboratory Practice (GLP), crucial for successful drug approval processes by regulatory authorities like the FDA and EMA.
Key Players in the Preclinical CRO Market
- PAREXEL International Corporation: Known for its operational excellence, PAREXEL offers Phase I-IV clinical development services. Its strategic alliances and technology integration enhance efficiency in clinical trials, including preclinical stages.
- Laboratory Corporation of America Holdings (Labcorp): Through Labcorp Drug Development, the company provides comprehensive preclinical and clinical trial services. Strategic acquisitions, such as Omniseq, strengthen its position in oncology and pharmaceutical research.
- Medpace, Inc.: A full-service CRO, Medpace specializes in Phase I-IV clinical development services, supporting the biotechnology, pharmaceutical, and medical device industries with a disciplined approach and scientific rigor.
- Envigo Corporation: Envigo offers vital services for drug development, with a strong presence in North America and Europe, addressing the increasing demand for efficient preclinical research services.
- Charles River Laboratories: With over 65 facilities in 16 countries, Charles River provides comprehensive services, from basic research to safety assessments, leveraging a robust global network.
- PRA Health Sciences (ICON): Acquired by ICON in 2021, PRA delivers advanced drug development services, emphasizing clinical trial processes and expanding into diverse therapeutic areas.
- Covance Inc.: Covance focuses on safety assessments, pharmacology, and toxicology studies. Its global partnerships and scientific expertise make it a leader in preclinical research and drug development.
- This robust market landscape, coupled with emerging trends and the strategic activities of key players, underscores the dynamic evolution of the preclinical CRO sector.
Conclusion
The preclinical CRO market is poised for significant growth, driven by rising pharmaceutical R&D investments, outsourcing trends, and the increasing prevalence of chronic diseases necessitating new drug discoveries. North America leads the market due to advanced healthcare infrastructure, while the Asia Pacific region is expected to experience rapid expansion, benefiting from cost efficiencies and favorable regulatory environments.
Strategic alliances, technological advancements, and market consolidation are shaping the competitive landscape. Key players are leveraging innovations like AI and expanding into specialized therapeutic areas. Despite challenges from stringent regulatory standards, the sector remains dynamic, with a projected CAGR of 7.5% through 2032.
Discuss your needs with our analyst
Please share your requirements with more details so our analyst can check if they can solve your problem(s)
